Taiwan income tax law measures 2018 | KPMG Global
Share with your friends

Taiwan: Income tax law measures affecting corporate, individual taxpayers

Taiwan income tax law changes

The legislature in January 2018 approved provisions to reform Taiwan’s income tax law.


Related content

The tax reform measures would:

  • Adjust the tax rate structure of the individual income tax, the corporate income tax, and the surtax on undistributed earnings
  • Ease the income tax burden on wage earners and mid- and low-income earners


Corporate tax measures

The rate of corporate income tax would increase to 20% (up from 17%). Companies with annual taxable income less than NTD 500,000 would be subject to the 20% rate, but that rate would be phased in over a period of years.

The surtax rate for undistributed earnings would be reduced to 5% (down from 10%).


Individual tax measures

The rate of individual income tax for individuals subject to the bracket for greater than NTD 10 million would be reduced to 40% (down from 45%). Specific measures address the individual income tax treatment of dividend income by repealing the imputation tax system, and by allowing individual investors to select between two options for taxation, whichever affords the more favorable outcome.

There are also measures addressing the withholding tax treatment on dividend income received by non-residents (foreign investors) including an increase in the rate of withholding tax to 21% (up from 20%).


Read a February 2018 report [PDF 483 KB] prepared by the KPMG member firm in Taiwan

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal